Bill 12 — First Session, 30Th Legislature, 68 Elizabeth Ii the Legislative Assembly of Alberta Bill 12 Royalty Guarantee Act (Legislature 30, Session 1)

L30 S1 11803

Alberta — Bills

2019 Bill 12 First Session, 30th Legislature, 68 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 12 ROYALTY GUARANTEE ACT THE MINISTER OF ENERGY First Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Second Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Committee of the Whole . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Third Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royal Assent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 Bill 12 BILL 12 2019 ROYALTY GUARANTEE ACT ( A s s e n t e d t o , 2 0 1 9 )

Preamble

WHEREAS the Government of Alberta desires to create investment certainty for oil and gas investors and producers in Alberta; THEREFORE HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: Amends RSA 2000 cM-17 1 The Mines and Minerals Act is amended by this Act. 2

Section 34(1) is amended by striking out “The royalty” and substituting “Subject to

section 34.1, the royalty”. 3 The following is added after

section 34: Royalty structures – legislative framework guarantee 34.1(1) In this section, (a) “fundamental restructuring” does not include adjustments or changes made (

i) to simplify or streamline co st calculations, processes, reporting or other similar requirements of an enactment or policy, (ii) to address significant changes in technology and world markets,

1 Explanatory Notes Explanatory Notes 1 Amends

chapter M-17 of the Revised Statutes of Alberta 2000. 2

Section 34(1) presently reads: 34(1) The royalty reserved to the Crown in right of Alberta on a mineral recovered pursuant to an agreement shall be the royalty prescribed from time to time by the Lieutenant Governor in Council. 3 Royalty structures — legislative framework guarantee.

2 (iii) in accordance with an enact ment in force on the date this

section comes into force, except as otherwise provided in this section, or in accordance with a relevant policy, including the planned transition to the Modernized Royalty Framework, 2017, or (iv) where the Government of Alberta considers that the adjustments or changes are appropriate and consistent with this section; (b) “hydrocarbon” does not include coal; (c) “legislative framework” does not include the Petroleum Marketing Act and the regulations under that Act.

(2) For a period of 10 years after this

section comes into force, no fundamental restructuring of the legislative framework generally applicable to hydrocarbon royalties reserved to the Crown in right of Alberta shall be implemented.

(3) Subject to the regulations, no fundamental restructuring of the legislative framework applicable to hydrocarbon royalties reserved to the Crown in right of Alberta in place on the date a well commences production shall be implemented with respect to that well for a period of 10 years after that date.

(4) For greater certainty, “the legislative framework applicable to hydrocarbon royalties reserved to the Crown in right of Alberta in place on the date a well commences production” in subsection (3) includes the planned transition to the Modernized Royalty Framework, 2017, which will apply to that well according to the terms in force on the date the well commences production. 4

Section 36(1) is amended by adding the following after clause (f): (

g) respecting the administration, implementation and operatio n of

section 34.1 generally or with respect to a well or mine or a class of wells or mines; (

h) respecting the legislative framework with respect to a well or a class of wells under

section 34.1(3);

2 Explanatory Notes 4

Section 36(1)(

f) presently reads: 36(1) The Lieutenant Governor in Council may make regulations (

f) respecting the waiver or variation of all or part of the royalty on a mineral and the termination of any such waiver or variation before any date, or before the passing of any time period, specified in the regulations by which the waiver or variation is to expire.

3 (

i) defining any word or expression used but not defined in clauses (

g) and (

h) and

section 34.1; (

j) further clarifying the definition of “fundamental restructuring”, “hydrocarbon” or “legislative framework” in

section 34.1(1) for the purposes of

section 34.1; (

k) respecting any other matter relating to

section 34.1.

3 Explanatory Notes

RECORD OF DEBATE Stage Date Member From To Questions and Comments From To Stage Date Member From To Questions and Comments From To Stage Date Member From To Questions and Comments From To Stage Date Member From To Questions and Comments From To Title: 2019 (30th, 1st) Bill 12, Royalty Guarantee Act

Document details

Collection	Alberta — Bills
Citation	L30 S1 11803
Type	bill
Volume / chapter	L30 S1 11803
Language	en
Format	json
Source	PROVINCIAL
Identifier	afee1f03f98426ab2060a0fb7c34b5fd6e9fabee

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